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It is expected that domestic caustic soda prices will remain stable in the later period

2021-05-17

Recently, the domestic market price of Caustic Soda continues to rise. Among them, the market price of 32% ionized membrane base in East China has risen to about 830 yuan; South China has risen to about 960 yuan; North China has risen to about 740 yuan; Southwest China has risen to about 800 yuan.

Chang Yingzhi, a research fellow in the chemical industry of China Investment Advisors, believes that the recent increase in domestic caustic soda market prices is mainly due to the decrease in market supply and the recovery of downstream demand markets. At present, some domestic caustic soda plants are shut down and overhauled, which has reduced the supply of caustic soda in the market in China, and thus drove the price of caustic soda. According to relevant data, the 230,000 tons of caustic soda plant of Ningxia Specialties in Ningxia was recently shut down for a period of 4-5 days, and no inventory of products was sold during the inspection period.

In terms of demand, the current “Golden 9 Silver 10” season is about to enter the peak season, the demand for caustic soda is expected to increase; and now, the market conditions for alumina, pesticides, chemical fiber and other industries have improved, and the demand for caustic soda also has a certain role in promoting. Therefore, people are more optimistic about the later trend of caustic soda, and strengthen the willingness of the relevant companies to raise prices, which will lead to a rise in domestic prices of caustic soda.

Zhang Yanlin, research director of China Investment Consulting, pointed out that since the second half of last year, domestic prices of caustic soda have been rising all the way. In particular, after the earthquake in the East Sea of ​​Japan, the domestic price of caustic soda was strongly rising. At present, the price of caustic soda in China is already at a relatively high price. The current domestic caustic soda downstream companies have low profitability and have limited affordability for high-priced Soda Ash. It is expected that the domestic price of caustic soda will not increase much in the later period, and it will remain stable in the future.

The "2011-2015 China chlor-Alkali industry investment analysis and forecast report" released by China Investment Advisors shows that caustic soda belongs to basic chemical raw materials and has been widely used in papermaking, textile (printing and dyeing, chemical fiber), and alumina industries in China. In recent years, due to the rapid development of these downstream industries and the large demand for caustic soda, China's caustic soda production capacity is also expanding, and now China's caustic soda industry has seen significant excess capacity.

Sodium hydroxid,with the chemical formula NaOH, is commonly known as caustic soda. It is a strong alkali with strong corrosivity, generally in the form of flakes,pearls or lumps.Industrial grade Caustic Soda contains a small amount of sodium chloride and sodium carbonate, and is white translucent crystal.Its aqueous solution has an astringent and creamy feel.Sodium hydroxide is prone to deliquescent in the air, so solid sodium hydroxide is often used as a desiccant.It is very soluble in water and emits a lot of heat when dissolved. It`s also soluble in ethanol and glycerin.

Sodium hydroxide (NaOH) is extremely versatile. Used in the production of paper, soap, dyes, rayon, metal smelting, petroleum refining, cotton fabric finishing, coal tar product purification, and food processing, wood processing and machinery industries.

The product is a strongly alkaline substance which belong to 8 grade dangerous goods. with strongly irritating and corrosive, dust or smoke can irritate the eyes and respiratory tract, corrode the nasal septum, direct contact between the skin and eyes and NaOH can cause burns, and misuse can cause digestive tract burns, mucosal erosion, bleeding and shock.So it`s highly corrosive and requires the "corrosive item" mark.


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